An experimental approach to the study of Banking: the BankNet Simulator

Abstract

The implementation of a simulator like BankNet allows to show the full potential of experiments with artificial agents in the study of economic problems.In the model the existence of banking intermediation is displayed in presence of bounded rationality, highly imperfect information and high transaction costs. The non coordinated agents choose on the basis of simple rules of thumb and unintentionally create institutions useful to reduce the complexity of the environment. The perspective is dynamic, and the adjustment processes are in great evidence. This aspect is more effective than in the traditional analytical models of differential equations employed in orthodox dynamic analysis. The continuing interaction among the agents is the evolutive engine which, “from the bottom-up” makes it possible for the system to evolve over time through a selecting mechanism.

"An experimental approach to the study of Banking: The BankNet Simulator” in “Economic Simulation with Swarm” edited by Francesco Luna and Benedikt Stefansson, Kluwer Academic Press, 2000

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